In Pakistan, owning a car is becoming increasingly difficult for many people. Recent reports show that vehicle sales have dropped by almost 40% in the current financial year.
Industry experts attribute this decline to several factors, including the weakening of the Pakistani rupee against the U.S. dollar, rising inflation, and high taxes. These conditions have made it much harder for everyday consumers to afford a car.
As people’s purchasing power decreases, the dream of owning a car is slipping away for many. According to reports, there’s been a shift towards imported vehicles, while the sales of local vehicles have decreased.
Additionally, there’s no sign of a tax cut on vehicles in the upcoming budget. A major issue contributing to this problem is the tax disparity between Pakistan and neighboring countries. In Pakistan, local car taxes range from 35 to 45%, while nearby countries have lower tax rates, between 15 and 20%.
Efforts to encourage alternative transportation, like electric vehicles, have faced challenges. Even though e-bike factories have been set up, demand and production remain low because of their high cost.
Asim Ayaz, a spokesperson for the Engineering Development Board, suggests that a forensic audit of car imports is needed to understand the situation better.
As Pakistan navigates these economic challenges, the issue of car affordability requires attention from policymakers and industry leaders. Solutions are needed to ensure that transportation remains accessible and affordable for everyone.
